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Aug 26 15 tweets 9 min read Read on X
🚨A new instalment of #hardcoredd for $ASTS 🚨 Here I summarize the recent FCC filings relating to SpaceX and Starlink to help us understand the problem they have.

This could be one of the all-time unexpected upside surprises for a duopoly: SpaceX was a large overhang for investors and then physics entered the room leaving $ASTS as the only approved playerImage
Here is background on Starlink's D2C program. The key points are they utilize a thin slice of high-band PCS spectrum, which matters in terms of guard band availability, system throughput, and propagation. Starlink repurposed Swarm for the effort, which is key: it was never built for purposeImage
$ASTS was built from the ground-up to deliver D2C functionality while not creating harmful interference. It does this by creating a nice "square shaped" signal around the utilized frequency and cuts off the "side-lobes" that will splash outside of the intended frequencies and cause interferenceImage
As @CatSE___ApeX___ beautifully demonstrated, the large wide beams of Starlink "splash" within the overall area of the satellite's field of view. This *aggregate* interference is the problem. $ASTS has thousands of small, focused beams that can be directed where they need to be and avoid this aggregate interference.

AT&T highlighted the extent of the issue in this filing: fcc.gov/ecfs/document/…Image
The FCC published initial SCS rules, invited comment, and ultimately passed final rules that dealt with permitted interference levels. Even before those rules were issued, Starlink had been petitioning for higher allowed interference (as measured by Power Flux Density - we will get to this). Starlink has put in filings that it CANNOT COMPLY. Their words.Image
Let's do some background. Power Flux Density ("PFD") is a measure of how much power from a radio signal is spread over a specific area.

In satellite communications, PFD limits are set to control the amount of signal power that reaches the Earth from a satellite. These limits help prevent the satellite's signals from interfering with terrestrial services (like mobile networks) that operate on adjacent or nearby frequencies.

This is the rule SpaceX cannot meet.Image
The FCC has referenced PFD with its limit of -120 dBW/m2/MHz. Less negative numbers equate to more power. But...on a log scale. The decibel (dB) is a logarithmic unit used to express ratios, often power ratios in electronics and communications. The logarithmic scale means that each step represents a multiplicative change, not a simple additive change.

When it comes to decibels relative to a watt (dBW), each 10 dB represents a tenfold (10x) difference in power.Image
However, in the filings we will see Starlink related the PFD to Interference/Noise ratios ("I/N"). They will argue the rules are inequitable because they think they can uphold I/N thresholds so long as they can break the PDF thresholds.

Interference-to-Noise Ratio (I/N) is a ratio that compares the level of interference from an unwanted signal to the noise level in the receiver. It is usually expressed in decibels (dB). A more negative I/N value indicates less interference compared to the noise floor. I/N thresholds are used to ensure that the interference from an adjacent signal does not significantly degrade the performance of a communication system. For example, a typical I/N threshold might be -6 dB, which means the interference power should be six decibels below the noise floor of the receiver.Image
Here is how the relationship works: if the goal is to keep the I/N ratio at -6 dB, the PFD limit must be set low enough that the signal power reaching the terrestrial network does not cause the interference to exceed this ratio.

If a satellite operator requests a waiver to increase the PFD limit (as SpaceX did, requesting to move from -120 dBW/m²/MHz to -110.6 dBW/m²/MHz), they argue that even with a higher PFD, the interference level will still be manageable (will still meet the desired I/N threshold).

However, others may contest this, saying that increasing PFD could push the I/N ratio above acceptable levels, leading to harmful interferenceImage
So why does the FCC use PFD instead of I/N?

The type of the Interference-to-Noise ratio (I/N) for a constant Power Flux Density (PFD) can change based on the type of spectrum. The type of spectrum affects the I/N ratio due to differences in propagation characteristics, usage environments, and receiver sensitivity at different frequency bands.

The choice to regulate PFD directly relates to the need for a more straightforward, enforceable standard that ensures compatibility and reduces interference between different radio services. By setting PFD limits, the FCC directly controls how much power a satellite can transmit towards the Earth’s surface. It’s a clear way to limit potential interference from space-based systems.

Regulating based on I/N would require the FCC to account for the specific technical details of each device, which is impractical given the diversity and continuous evolution of technology.Image
The problem that Starlink has, which it has admitted to, is that to adhere to the rules it will not have a functional system. SpaceX tells the FCC that by reducing the system power, its system's signal quality would fall apart and users might not be able to connect at all (page 4, para 2 of filing)
fcc.gov/ecfs/document/…Image
Everything has a trade off and these graphics @CatSE___ApeX___ shared helps visualize what the FCC filings show. The current system interferes. If you turn down the power, the signal quality goes to hell. If you keep the signal quality but use your small sliver of spectrum as a guard band, there is not enough throughputImage
The result is that Starlink appears to require a new rule. I have no idea what they will do short of a redesign of their system. As @CatSE___ApeX___ put in meme form, Starlink is now going to be trashed by the Swamp monsters because the FCC is not a "move fast and break things" type of agency.Image
Citations here:

§ Initial AT&T Objection to SpaceX May 23, 2023:
§ SCS Rules:
§ Full SpaceX Docket: ))
§ Verizon Petition to Deny August 12, 2024:
§ AT&T Petition to Deny August 12, 2024:
§ SpaceX Support of Waiver August 22, 2024:
§ T-Mobile Support of Waiver August 22, 2024:
§ FCC Final Rules August 23, 2024: fcc.gov/ecfs/document/…
federalregister.gov/documents/2024…
fcc.gov/ecfs/search/se…
fcc.gov/ecfs/document/…
fcc.gov/ecfs/document/…
fcc.gov/ecfs/document/…
fcc.gov/ecfs/document/…
docs.fcc.gov/public/attachm…
As always, the full DD can be found here.

XOXO, Kook.

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More from @thekookreport

Nov 24
🚨🚨 $ASTS WEEK IN REVIEW🚨🚨

The wet dream of shorts is about to turn into a nightmare for them. I will also try to do a Spaces to cover these topics tomorrow and will schedule it when I know my schedule. Image
🤘Key Highlights:

Sources and Uses of Funds: Analysis suggests the company may be pursuing less dilutive financing strategies, signaling long-term confidence.
Government funding, MNO prepayments, and EXIM support remain key potential catalysts.

Growing Interest: $ASTS presentations are drawing larger crowds, with institutional investors starting to take notice.

Market Sizing: The satellite market potential, especially in D2D communications, is vast, with both consumer and military applications on the horizon.

Short Seller Debunking: Recent short theses are critiqued, highlighting gaps in their assumptions and reinforcing the long-term investment thesis for $ASTS.

Technical Developments: Continued testing of BW-3 and updates on beam size efficiencies showcase $ASTS's technological edge.

Leadership Moves: CEO Abel Avellan's estate planning transaction signals confidence in $ASTS's future while aligning shareholder interests.

Policy & Regulation: Changes at the FCC, including new leadership, are likely to shape the regulatory landscape favorably for satellite communications.
ℹ️Sources & Uses

Let's start with a review of what matters a lot for a stock like $ASTS - it's balance sheet.

What's interesting is that since earnings, the Company has not used the ATM. There are two paths I'd take if I were CFO (and I'm not out of my league to say I could be a CFO).

Path 1: Hit the ATM. Once you start using it, just get the whole thing done and be over with it. They obviously did not choose Path 1. Why?

Path 2: Do what you need to secure yourself and not gamble, but realize you have something else in store to minimize dilution. MNO pre-payments, EXIM, 5G Funds.

I thought Path 1 was the prudent path. It appears that a prudent company has chosen Path 2. The fact that Abel did his personal liquidity transaction after potentially suggests that ATM is done for the time being.
Read 46 tweets
Nov 18
🚨🚨 $ASTS WEEK IN REVIEW🚨🚨

Bezos finds a new way to get his rockets off. That and much more on this week's "Week in Review..." Image
🤠In this week's Review, you'll find the following topics

Highlights:
Earnings Call Summary:
Best earnings report to date.
Signed Multi-Launch Agreement (MLA) for 60 launches.
Successful initial operations of Block 1 satellites.
Key partnerships with AT&T, Verizon, and Rakuten confirmed.
Progress on government contracts, including significant EXIM financing application.
Updated CAPEX guidance indicates a path to cash flow positivity.

Strategic and Operational Updates:
$ASTS announced regulatory progress and plans for continuous constellation coverage by 2026 (ahead of market expectations).
Multi-launch strategy diversifies launch providers (SpaceX, Blue Origin, ISRO).
Detailed updates on individual launches, including upcoming ISRO and SpaceX flights and Blue Origin’s New Glenn potential.
A new schedule tracker highlights launch cadence.

Market and Investor Sentiment:
Stock faced short-term volatility, attributed to perceived manipulation post-MLA announcement.
Jim Cramer maintains a cautious stance, while community members argue the stock's upside potential.
Discussion on how the market underestimates $ASTS's long-term network monetization potential.

Military and Government Opportunities:
Growing government/military interest, including NATO discussions and SDA contracts.
Non-communication use cases (e.g., radar, GPS, phased arrays) offer additional growth areas.

Regulatory and Financial Progress:
FCC filings for AT&T and Verizon enable testing and spectrum allocation.
EXIM financing discussed as a key component of long-term low-cost capital structure.

Competitive Landscape:
Updates on SpaceX’s growing valuation and capacity, alongside Starlink challenges.
Industry dynamics highlighted by the collapse of rivals like Rivada.

Global Expansion:
Focus on India and the Middle East, with strategic moves like the ISRO launch providing market footholds.
💵$ASTS Reports Earnings

This was the best earnings report $ASTS has given. The key points are:

- MLA signed for 60 launches
- Successful initial operations of Block 1
- Initial FCC filings for AT&T and Verizon done
- 3 new government contracts
- EXIM application filed and expect more MNO money soon
- Remaining CAPEX for cash flow positivity is $120-170MM
- The SDA (military contract) is an example of something that can grow into huge deals
- Expect MNO deals soon (Rakuten already done)

But don't ask me, here is all the news that's fit to print:

x.com/spacanpanman/s…
Read 52 tweets
Nov 10
🚨🚨 $ASTS WEEK IN REVIEW🚨🚨

Trump, Founder of the Space Force, is back...a tough week for the stock price, but many fundamental events are ahead for next week. Read on. Image
😶‍🌫️This week will cover the following:

ASTS Earnings Preview
I'll share my thoughts on what could happen on the Earnings Call on Thursday

ASTS Keeps Scaling
Expect updates on accelerated plans to launch commercial service soon.

Potential ASTS Acquisition
Speculation on Amazon or Google potentially acquiring $ASTS for telecom assets, similar to big tech’s entry into other markets.

Kamala Trade Impact
Market expects government support for SpaceX, but 70% of the U.S. market is tied to $ASTS.

$ASTS as DoD's Ace
Significant potential for ASTS in U.S. defense applications, backed by recent insights from a UT Austin Professor.

Defense Applications Expand
More details on ASTS’s defense applications from expert sources.

Ariane BB2 Launch
Anticipation of at least one launch with Ariane, according to sources.

Short Sellers on ASTS
Shorts are targeting ASTS, comparing it to Starlink, but investors remain bullish on $ASTS’s unique position.

Government Opportunities
ASTS is well-positioned for national security contracts, highlighted by a recent SDA award.

FCC Support & 5G Expansion
Commissioner Brendan Carr supports technology developments benefiting ASTS and the DoD.

Nokia 6G Summit
ASTS featured as a critical technology asset for defense applications at the summit.

Canadian Support
Canadian Space Agency backs ASTS, with Bell Canada also showing support.

New Zealand Partnership Misstep
Some concerns over a New Zealand telecom partnership that may not align with ASTS’s strategic goals.

Starlink's Misleading Claims
Allegations of Starlink overstating service accuracy, raising questions for private investors.

Bezos and Blue Origin
Bezos’s New Glenn rocket is nearing launch readiness, a significant milestone for Blue Origin.

Apple and Globalstar Partnership
Overview of Apple’s $1.5 billion satellite smartphone investment with Globalstar.

KOOKGPT Expansion
KOOKGPT is accepting blank term sheets for new AI company initiatives, with standard NVCA terms preferred.
💰 $ASTS Earnings Preview

This is the summary of what I expect could be covered on the earnings call, as well as separate events that could follow shortly thereafter Image
Image
Read 29 tweets
Nov 3
🚨🚨 $ASTS WEEK IN REVIEW🚨🚨

Good things are coming, read for more. Image
📢 ASTS Milestone Announcement

AST SpaceMobile is signaling exciting developments ahead! They’re “getting ready to operate and provide commercial services,” suggesting the start of significant milestones.

🎙️ Interview with Scott

Scott discussed ASTS's goal to get 45-60 satellites operational in the U.S., hinting that they may provide guidance for this in 2025.

Read 19 tweets
Oct 27
🚨🚨 $ASTS WEEK IN REVIEW🚨🚨

$ASTS gets included in an incredible US Military Project, becomes a Prime Contractor, and completes the unfurling of all 5 Block 1 satellites. Read on for more! Image
ASTS Block 1 Satellite Unfurling Ahead of Schedule:
AST SpaceMobile completed the unfurling of its five Block 1 satellites six weeks after launch, moving ahead of schedule. This rapid deployment primes the satellites for upcoming commercial and U.S. government operations, showcasing ASTS's commitment to timely and reliable performance.

Promotion to Prime Contractor in the HALO Project:
AST SpaceMobile advanced from subcontractor status to prime contractor with the U.S. Space Development Agency (SDA) under the HALO initiative. This pivotal promotion allows ASTS to manage contracts directly, highlighting its growing technical maturity and strengthened industry relationships.

HALO Demonstrations Begin with ASTS as Key Player:
ASTS is among 19 companies chosen for the SDA’s HALO project, aiming to enhance missile tracking and communication capabilities in low-Earth orbit. The initial orders involve the launch of two satellites within 12 to 18 months, with the possibility for larger contracts as the program expands.

FCC Compliance and Strategic Diplomacy: While regulatory hurdles are common in satellite communications, ASTS has maintained steady compliance with FCC requirements, contrasting with recent publicized disputes by SpaceX. ASTS’s smooth navigation of these processes underscores its meticulous approach to regulatory compliance.

FirstNet and New Spectrum Gains Support Future Expansion: AT&T’s FirstNet received additional spectrum, furthering ASTS’s potential reach for emergency and public safety communications. As the FirstNet network grows, ASTS is positioned to provide valuable satellite-based connectivity for first responders and emergency personnel.

Spotlight on Government Spending for Space Initiatives: The Pentagon's $14 billion Next-Gen OPIR program reveals a sustained emphasis on large-scale satellite procurement. ASTS’s modular satellite technology aligns well with such ambitious government initiatives, offering high-altitude solutions ideal for persistent surveillance and missile tracking.
READ THIS BEFORE ANYTHING ELSE. This was so well written by God's representative on earth, Ra himself.

Read 25 tweets
Oct 19
🚨🚨 $ASTS WEEK IN REVIEW🚨🚨

2 more birds join the flock; AT&T shows the end game, and much, much more. This week's $ASTS Week In Review also includes an upfront summary Image
Unfurling Progress: With the recent milestone, three satellites are now operational, continuing to expand our coverage.

Bloomberg Interview Success: Scott delivered an impressive interview, highlighting our network's strategic focus. Key takeaways include: Over 45 MOU partnerships with 2.8 billion subscribers.
A vertically integrated model, enabling us to scale production to six satellites per month.
A clear message to shorts: we are differentiated, focusing on shareholder value.

Market Dynamics & Competitive Landscape: The narrative is shifting significantly in our favor. Our positioning has evolved from being seen as a "tiny player" to a formidable competitor in the market.

Government Engagement: Our solutions continue to resonate with government needs, particularly in the U.S., positioning us as a crucial partner for long-term strategic initiatives.

Talent Acquisition: We're pleased to welcome Luiz Abud to the team. With his expertise and insights, particularly from his time at Nokia, we expect to accelerate the commercialization of our technology.

Investor Confidence: Institutional interest is growing, as evidenced by BlackRock's increased stake in our Series A stock. This shift towards long-term holders underscores the market's belief in our growth trajectory.

Key Partnerships & Market Moves: The recent Verizon spectrum deal has strategic implications, especially as it positions us alongside leading telecom players in shaping the future of satellite-based communication.

Expanding Opportunities in Mexico: Our collaboration with regional partners is well-timed as the country navigates regulatory challenges. ASTS offers a promising solution for 5G expansion, making it a valuable partner for regional telecom giants.
UNFURLING CONTINUES: And then there were 3.

Image
Read 45 tweets

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